You pay your car insurance premium every month with the expectation that you’ll be financially compensated after a crash. Whether you suffer damage to your vehicle or a personal injury, you probably expect your insurance company to provide decent compensation. Besides, car protection is crucially important. To learn about proper vehicle protection visit here.
Unfortunately, most people don’t get decent compensation from insurance payouts. Many people are left stranded with mounting medical bills and no recourse to get additional compensation. That’s because once you accept a settlement offer from your insurance company, you lose the right to sue. The only way to maximize your compensation is to file a personal injury lawsuit.
Wondering why insurance payouts are so low? Here are 4 of the top reasons.
1. Every insurance claim is assigned a maximum payout
An insurance company’s first priority is profit. That’s why premiums are high and payouts are low. Insurance claims adjusters are required to offer victims the lowest possible settlement amount from the start. You can negotiate a higher settlement, but every accident is assigned a maximum payout that adjusters aren’t allowed to exceed.
Limited settlements won’t cover your bills
Even if you do manage to negotiate the maximum allowable payout for your claim, there’s a high probability that amount won’t be enough to cover your medical bills. Your settlement might cover emergency room visits and initial testing (maybe), but it probably won’t cover extensive medical care or ongoing care.
In addition to falling short of covering all medical bills, an insurance settlement will also fail to cover your daily living expenses. Insurance settlements aren’t usually big enough to cover the full extent of harm you’ve suffered. For example, you won’t recover future medical expenses – once you accept a settlement offer, there will be no additional payments. You also won’t recover lost income, loss of earning capacity, pain and suffering, or emotional distress.
Depending on the severity of your injuries, you might be dependent on additional compensation just to make it through your recovery without getting further into debt or having to sell your home. The only chance you have to recover all medical and daily living expenses is by filing a personal injury lawsuit.
2. Insurance companies are hoping you’ll take what you can get
As for-profit corporations, insurance companies pay as little compensation as possible hoping you’ll take what you can get. They know that when people are desperate for money, they might just accept the first offer without attempting to negotiate.
Insurance companies also count on victims believing that filing a personal injury lawsuit is too much trouble. In reality, it does take time to file a lawsuit and receive compensation, but the end result is often a significantly higher payout.
3. Medical bills are often incurred over a period of time
Medical bills can pile up fast, but they can also continue to pile up over a long period of time. Certain injuries will inevitably require long-term medical testing and care. For example, spinal cord injuries require extensive care and rehabilitation over a period of time, sometimes for years. With spinal cord injuries that result in paralysis, the need for ongoing care can last for a lifetime.
If you have a serious injury and accept a settlement from your insurance company, you probably won’t get enough to cover your future medical bills.
4. Medical bills are usually higher than expected
If you’re used to small copays and medium-sized emergency room bills, you’re in for a shock when you get your bills after a personal injury. Chances are, a trip to the ER after a car accident will cost you thousands of dollars due to the extensive amount of testing they need to perform.
For instance, you might get an ultrasound, a CT scan, and several high cost blood tests depending on the severity of your injuries. Even with good health insurance, your portion for these tests will be enormous.
Use careful consideration before accepting an insurance settlement offer
According to CNBC, 66.5% of all personal bankruptcies are caused by medical debt. If you get stuck with medical bills you can’t pay, you’re putting yourself in a tough position. You might need to file for bankruptcy or choose between paying your medical bills or putting food on the table.
To avoid the shock of large medical bills you can’t afford to pay, carefully consider any insurance settlement offer you receive. The best solution is to contact a personal injury lawyer before accepting a settlement offer to make sure you’re making the right decision.